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Question - ABC sells services @ an average of $120 per hour.
Monthly fixed costs that are directly traceable to clients amount to $40,000.
Monthly fixed costs that are not directly traceable to $30,000.
Average variable costs the are directly traceable to clients amount to $60 per hour.
Average variable costs that are not directly traceable to clients amount to $10 per hour.
The tax rate is 40%.
Required - How many hours are required to reach $900,000 in net income after taxes.
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Prepare a master budget for the three-month period.
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Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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